Find the best covered call yields today

What this recipe computes

• Annualized static yield: premium as a share of spot, scaled to a year.
• OTM cushion — how far the stock can rise before the strike is touched.
• Delta as the conventional rough proxy for finishing in the money, plus open interest.

What it does not claim

• Premium is the settlement close; a seller transacts at the bid, so every yield shown is an upper bound.
• Static yield assumes the call expires worthless and models no assignment, early exercise or dividend.
• A single-leg screen — the tape cannot link legs, so nothing here is an actual covered call position.

How to read it

1. Step 1

   Set the assignment ceiling

   Delta caps how far in the money the screen will go.

2. Step 2

   Read yield with cushion

   A high annualized number on a thin cushion is a different trade from the same yield further out.

3. Step 3

   Sanity-check the vol

   High yield is usually high implied volatility — the market pricing a wider range, not free income.

Frequently asked questions

Why is the yield an upper bound?

It is computed from the settlement close. A real seller transacts at the bid, which sits below it, so the premium actually received is lower than the figure shown.

Is a 100% annualized yield real?

It is arithmetic, not a forecast. Annualizing one short-dated premium assumes a cycle repeating all year at the same price, and that level of premium usually reflects a name the market expects to move hard.

Related glossary

• IV RankIV Rank places today’s implied volatility between its recent high and low so “expensive” or “cheap” is relative to that underlying’s history.
• Moneyness (ITM / ATM / OTM)Moneyness labels a contract relative to spot: in-the-money (ITM), at-the-money (ATM), or out-of-the-money (OTM).
• Open interest (OI)Open interest is how many options contracts remain open. Unlike volume, it does not reset each morning and usually updates after the session.

Related personas

• Options Flow for Options SellersSelling premium works until you short the strike the tape is attacking. Flow and walls help you see where demand is concentrated before you choose short strikes.
• Options Flow for Swing TradersSwing traders care about positioning that can last more than a day: unusual flow, OI confirmation, and walls for multi-day levels.

Related recipes

• IV rank boardAnswer "whose implied vol is rich right now" without already knowing which symbol to check.
• Expected moveAnswer "how far is this name priced to move by Friday" without building a vol surface first.
• Vol surfaceSee whether options are rich or cheap on the surface before you sell or buy premium.